How Is Mental Health Billing Different From Medical Billing?
Time is better spent in treatment sessions than between labs and X-rays. The services counsellors, therapists, and mental health professionals provide differ from their medical counterparts. Substantial numbers of people struggle with mental illness, thus making it one of the major causes of suffering worldwide. How Mental Health Billing Different From Medical Billing?
Although there is a wide range of mental disorders, there are effective means of prevention and treatment that can significantly enhance the lives of those who suffer from them. Many people in the mental health care industry get started to provide their communities with this life-changing service.
Mental health professionals must often process billings to save money when running a business. Without assistance from outside sources, this is a complex undertaking due to issues including insurance companies’ shifting policies and billing practices. But, what is the difference between mental health billing and medical billing?
What is Mental Health Billing?
Mental health billing includes sending insurance bills to therapists, psychologists, psychiatrists, and counselors and following up on them. This billing method ensures that mental health workers get paid while meeting the requirements of Medicare and Medicaid and insurance companies.
Coding, filing claims, checking patients’ insurance, keeping track of claim status, dealing with rejections, and making sure payments are made on time are all parts of mental health billing.
There are many types of treatment, such as individual therapy, group therapy, drug management, and more, which makes the process more difficult. Incorrect billing codes for these services can cause claims to be denied or refunds to be delayed.
What is Medical Billing?
Reimbursement for medical care is achieved via what is known as “medical billing,” or the submission of claims to insurance providers. Billing and coding for medical services, including office visits, operations, and diagnostic imaging, are all part of medical billing.
Most medical billing is simple and gets completed by professionals with a vast understanding of medical language and code.
How Is Mental Health Billing Different From Medical Billing?
Insurance companies often impose more regulations on behavioral health billing claims, making mental health billing more complex than medical billing.
Here are the key differences:
Timing Of Session
Unlike standardized medical billing codes, mental health billing varies with session length. For example:
- 30-minute psychotherapy: 90832
- 45-minute psychotherapy: 90834
- 60-minute psychotherapy: 90837
- Family psychotherapy (50 minutes): 90846
- Family psychotherapy (50+ minutes): 90847
Limited Appointments
Insurance plans may limit the number of mental health sessions covered, requiring knowledge of coverage restrictions to avoid claim denials.
Authorizations in Advance
Insurers occasionally require prior permission (pre authorization) before covering mental health services. This might change from service to service and across insurance providers.
Pre-approval may not be necessary for a first office visit but for psychological testing. After a specific number of doctor’s appointments, your insurance company could demand pre-approval for any further treatment.
Rule Adjustments
Billing rules for mental health services, including telehealth codes, change frequently. These updates are crucial to avoid incorrect claims and delayed payments.
Personalized Health Care Strategies
Tailored mental health care plans can complicate billing compared to standardized medical treatments.
Site of Care (Telemedicine)
Telehealth billing includes modifiers:
- Modifier 95: Real-time communication via telecommunications
- Modifier 02: Telecommunications system as the point of service
HCPCS codes for telehealth:
- G2010: Remote assessment of recorded video
- G2012: Remote check-ins
- 99421: Online assessment (5-10 minutes daily)
- 99422: Online assessment (11-20 minutes total)
- 99423: Online assessment (21+ minutes total)”
Types of Mental Health Billing
Mental health billing can be categorized into several types, each corresponding to the different services provided by mental health professionals:
Psychiatric Billing
Medical professionals like psychiatrists and nurse practitioners charge for their services. These professionals treat mental health problems with both medication and therapy. Billing for psychiatric services uses the codes 90833, 90836, and 90838 for psychotherapy sessions that include medication control.
Psychotherapy Billing
Billing for psychotherapy includes meetings between a mental health professional and a patient, such as CBT and DBT. This is based on the time and depth of the therapy. The sessions have CPT codes 90834 for 45 minutes and 90837 for 60 minutes.
Substance Abuse Billing
Billing for substance abuse is for help with addiction. This covers billing for both one-on-one and group treatment for drug abuse. Most of the time, 90791 is used for initial evaluations, while 90853 may be used for group therapy meetings. For correct billing and insurance compliance, you need to keep good records.
Coding Regulations and Important Codes for Mental Health Billing
In mental health billing, you must follow coding rules to ensure you get paid correctly and follow industry standards. Key rules include using ICD-10 for diagnosis and CPT numbers for procedures.
Below are important codes for mental health billing:
- ICD-10 Codes: F32.9 (Unspecified Major Depressive Disorder), F41.1 (Generalized Anxiety Disorder), and F43.10 (Post-Traumatic Stress Disorder).
- CPT Code 90791: Psychiatric Diagnostic Evaluation, treatment for 45 minutes, A short evaluation of their emotions and actions.
Similarities and Differences Between Behavioral Health and Medical Billing
Similarities
- Insurance Processing: As is evident for behavioral health, medical billing also offers challenges in understanding insurance claims processing. Both providers have to deal with incredibly complicated coders, such as CPT and ICD-10, to submit clean and accurate claims for reimbursement.
- Compliance and Regulations: HIPAA laws govern patient privacy, and state and federal laws govern the provision of healthcare services.
- Revenue Cycle Management: In behavioral health and medical billing, sound RCM is very important. It helps to submit timely claims, document all cases, and provide timely follow-up to recover the maximum amount.
Differences
- Complexity of Coding: One of the main conclusions is that coding in behavioral health takes more time and demands more complexity because of the subjectivity of the diagnoses and the services delivered.
- Treatment Duration: The behavioral health treatments might also extend longer and include several sessions; hence, there would be continued billing issues. On the other hand, medical billing can be a single-time approach or single-time deal, mostly a procedure or a treatment.
- Provider Networks: Credentialing and getting into insurance panels might be more of an issue for behavioral health providers, as research says that while mental health care is more of a priority today than it was in the past, getting reimbursed for its services can still be an issue.
Common Challenges in Mental Health Billing
- You must use specific codes that accurately describe your services in mental health bills. Claims can be delayed or denied if the codes need to be corrected or updated.
- Getting mental health care is covered by a range of insurance plans. It’s hard and takes a lot of time to deal with inconsistencies.
- Laws and mental health insurance policies change constantly, so professionals need to stay current to avoid charging problems.
- Mental health claims are turned down more often than other medical services because of bad paperwork or insurance rules that aren’t followed.
- HIPAA and other privacy rules regulate payment for mental health services. A breach can lead to serious legal and financial problems.
- Many insurance companies require pre-approval for mental health services, which slows down treatment and makes things more difficult for providers.
- Coordinating benefits for people with multiple insurance companies could slow billing and make paying harder.
- When claims are denied, the appeals process can be long and hard to understand, needing more paperwork and time to care for the patient.
- Mental health care reimbursement rates vary by insurance company, which makes it hard for practitioners to predict how much money they will make.
- Mental health billing can be hard for smaller centers because they might not have enough billing staff. This can lead to mistakes and late payments.
Mental Health Billing: 4 Tips You Need to Know!
One cannot dispute the difficulty of invoicing for mental health services. Because of the often modest size of mental health offices, dedicated billing staff is not always available to assist with patient claims.
But that doesn’t mean your practice should go underpaid or unpaid. Following these tips can help ensure you optimize billing for mental health services and maximize reimbursements.
Learn the Intricacies of Each Payment Method
Verifying benefits is essential to the revenue cycle management (RCM) process. You could lose the claim if you don’t understand the patient’s coverage before their appointment.
An excellent place to begin is with a fast and trustworthy eligibility checker. It is particularly beneficial (especially for smaller practices) if your eligibility program can automate parts of the procedures for you. The gadget should verify weekly patient benefits and alert you to any problems or expiring plans.
Keep Meticulous Records
Having thorough patient records will aid in obtaining pre-approvals and appealing denied claims. In addition to correct demographic data, you should have complete information on the patient’s diagnosis, drugs, and therapies.
Use A Reliable Insurance Eligibility Tool
Since there are no universal requirements for filing claims, you’ll need to tailor your approach to each payer. You still need to learn the ins and outs of each payer, even if you’re only dealing with one or two.
Get Right to Billing Already!
You should submit your claims immediately. Given the length and complexity of the procedure, getting started as soon as possible is essential to ensuring timely payment.
Solutions for Simplifying Mental Health Billing
- Implement Specialized Billing Software
- Outsource Billing to Professional Services
- Regular Staff Training and Education
- Utilize Electronic Health Records (EHR) Systems
- Stay Updated on Insurance Policies
- Focus on Accurate Coding
- Conduct Regular Billing Audits
Outsource Your Mental Health Billing to HMS Medical Billing
Billing for mental health services presents unique challenges that require specialized knowledge and meticulous management. With complex regulations, varied treatment codes, and frequent updates to billing practices, navigating this landscape can be overwhelming for many practices.
Outsourcing your mental health billing to the HMS Medical Billing Company allows you to streamline your revenue cycle, ensure accurate and timely claims processing, and maximize reimbursements.
Our expert team is adept at handling the intricacies of mental health billing, allowing you to focus on providing exceptional patient care. Partner with us to simplify your billing processes and enhance your practice’s financial health.
FAQs
Mental health billing involves unique codes, stricter documentation, frequent policy changes, and confidentiality concerns, making it more complex than regular medical billing.
Unlike more straightforward medical billing codes, mental health billing uses specialized codes that require precise selection, often based on therapy type and duration.
Preauthorization is more challenging due to stricter requirements and detailed treatment plans often needed by insurers before approving mental health services.
Time-based billing charges for mental health services are based on the length of the session, with codes corresponding to specific time intervals.
Mental health claims are more likely to be denied due to coding errors, insufficient documentation, and stricter insurance guidelines.
The length of a therapy session directly impacts billing, with different codes used based on the session’s duration affecting reimbursement rates.
The treatment of mental problems is represented by CPT Codes 90846 and 90847, referred to as family psychotherapy services.
The medical industry has two distinct billing practices: institutional and professional.
Codes from the Current Procedural Terminology (CPT) manual provide medical practitioners with a standard language for reporting and classifying medical services and procedures.
The state of one’s behavioral health is more directly related to an individual’s choices. It depends on how they react under different conditions. People might respond exceptionally differently to the same emotional triggers. Contrarily, mental well-being is primarily concerned with an individual’s internal experiences.
